Major banks: what the big four want from a business borrower

When most owners think “business loan”, they picture a major bank. That’s fair: the big four still provide a large share of business credit in Australia, and for the right borrower they are hard to beat on term, limit and price. The trick is knowing whether you are that borrower before you spend weeks on an application.

Who do the major banks like to lend to?

A major bank’s ideal business borrower looks something like this:

• trading for at least two years, with tax returns and financial statements lodged and up to date;
• profitable, with profit that comfortably covers existing and proposed repayments;
• a clean credit history for the business and its directors;
• an ATO account that’s current, or a payment plan being honoured;
• property to offer as security for larger or longer facilities;
• an industry the bank is comfortable with.

The closer you are to that picture, the more the bank competes for you. The further away, the more likely the answer is “not at this stage”.

What do major banks lend for?

Almost everything a mainstream business needs: term loans for expansion or acquisitions, overdrafts and lines of credit for working capital, commercial property loans, equipment and vehicle finance through their asset finance arms, trade finance for importers and exporters, and bank guarantees for leases. Their product range is the widest in the market, which is one reason owners default to them.

What security and documents will a bank ask for?

Area	What to expect
Financials	Two years of financial statements and business tax returns, sometimes management accounts for the current year
Tax	Recent BAS and an ATO account statement or portal print-out
Personal	Director tax returns, personal assets and liabilities, ID
Purpose	A business plan, cash-flow forecast or contract explaining what the money will do
Security	Property details for a mortgage, a general security agreement over business assets, director guarantees
Property	A formal valuation ordered by the bank

business.gov.au lists identification, a business plan, financial reports and forecasts, lease agreements and personal financial information as typical requirements. Banks tend to ask for the whole set, and they will usually ask follow-up questions once credit reviews the file.

Why do major banks decline business loans?

Most bank declines come back to policy rather than a judgement about whether the business is any good:

• Not enough history. Under two years trading, or financials not yet lodged.
• Tax returns behind. If the accountant hasn’t lodged last year’s return, the bank often can’t assess.
• ATO debt. Especially debt without a payment plan, or a plan that has been missed.
• Credit blemishes. Defaults, court judgements or a past insolvency for a director.
• Losses or thin profit. Even if cash flow looks fine in the bank account.
• Industry appetite. Some sectors are restricted or need extra security.
• Security shortfall. Not enough equity once the bank applies its own lending ratios.

If you’ve already been declined, read what to do after a bank decline before trying another bank. If the reason was a policy line, the next major bank will usually draw the same line.

Unsure whether your file fits the bank mould? A specialist can tell you in one call — ask without a credit check and we’ll say honestly whether a bank is the right first stop.

How long do major banks take?

Bank business credit rarely moves quickly. A straightforward renewal for an existing customer can be prompt, but a new facility usually involves an application, credit assessment, valuation, formal approval, loan documents and settlement. Timeframes depend heavily on how complete your documents are at the start. If speed matters more than price, a non-bank or private lender may be a better first call.

What protections come with bank lending?

Banks are authorised deposit-taking institutions supervised by APRA. Banks that subscribe to the Banking Code of Practice commit to standards that cover small business customers and guarantors; the 2025 version of the Code took effect on 28 February 2025. Small business loan contracts in standard form are also covered by unfair contract term protections that ASIC administers. These don’t change whether a bank will lend to you, but they shape how the relationship works once you’re a customer.

When is a major bank the right choice?

Situation	Major bank a good fit?
Buying commercial premises with a solid deposit and two years of profit	Usually yes
Refinancing an existing bank facility on better terms	Often yes
Expanding an established, profitable business	Often yes
Clearing an ATO debt quickly	Usually no
A business under 12 months old	Usually no
Funds needed within days	Rarely

If you sit in the “usually no” rows, look at regional and challenger banks for a slightly wider policy, or move to non-bank and specialist lenders. Our guide to why lenders say no shows how each lender type handles the common sticking points.

Which business loan products do the big four offer?

The major banks cover almost every product in this guide, but each sits inside a stricter credit policy than you’ll find elsewhere. Typical offerings include secured and unsecured term loans, business overdrafts and lines of credit, equipment finance through the bank’s asset finance arm, commercial property loans, invoice finance for larger businesses, bank guarantees for leases and contracts, and trade finance for importers and exporters. Some also run small unsecured products assessed largely from the account data they already hold on their own customers.

Product	What the bank usually wants	Where an alternative might fit better
Secured term loan	Two years of financials, property security, clean credit	Non-bank lenders if financials are behind
Overdraft or line of credit	Established banking history with that bank	Online lenders for smaller unsecured limits
Equipment finance	Financials or strong bank statements	Asset financiers for newer businesses
Commercial property loan	Deposit plus business or rental income	Non-bank lenders for specialised property

Does being an existing customer help?

Often, yes. A bank that has seen years of your transaction account can assess you with more confidence, and some products are only offered to existing customers. But a long relationship doesn’t override policy. If the business is under two years old, has an unpaid default or hasn’t lodged returns, your own bank will usually decline just as a new bank would. The relationship helps most at the margins: a slightly higher limit, quicker answers, or flexibility on a condition.

Getting a major bank application right

Banks reward completeness. Before you apply, have two years of financial statements and tax returns, current BAS, an ATO account in order, a short summary of what the loan is for and how it will be repaid, and details of any property security. If you’re not sure the business is bank-ready, check first rather than risk a decline and a credit enquiry; a specialist can tell you in one conversation. Our guide to business loan requirements lists what lenders look at, and you can ask us which lender type fits without a credit check.

Is your business bank-ready, or better suited elsewhere?

You don’t need to find out by trial and error. Send a short enquiry with the amount, purpose and a few facts about the business, and a lending specialist will tell you whether a bank or another lender type is likely to say yes. Asking won’t put an enquiry on your credit file, we approach one well-chosen lender rather than many, and accurate answers on the form are what make that first approach count.